C2t—Lancaster Farming, Saturday, junt 21,1980 More For Leu May milk production in Order 2 jumped a million pounds a day over April to a total of 993 million pounds the highest in eight years. But even that monthly in crease of 3.2 percent was the smallest since February. For the first tune since last fall, increases in Order 2 receipts were under the national average May production in the country was up 3.4 percent over last May and Pennsylvania jumped a whopping four percent Traditionally May has been the biggest production month in Order 2 so hopefully you may be looking at the peak for the year. Of course, the more for less rule appbes to the blend pnce as most producers know but ignore. So, as a result of more milk, you’ll be getting six cents a hundred less than last month. You can argue that your Louisville Plan payment was up 10 cents over April so you really gained four cents. If you take that route then you’ll have to admit you blew a 24 cent increase in your Class I price over last month by lowering your utilization to 39.6 percent. Altogether, you could have done much worse with 993 million pounds at $11.90 a hundred. What helped you in addition to that 24 cent jump in the Class I pnce (for which you can thank the March M-W and the pnce support program) was a 15 million pound increase in Class I sales that boosted consumption by 100,000 pounds a day But look out for June. Even if total production AIR BLAST SPRAYER KEY FEATURES: • 55 gallon poly tank • 12‘/2 HP (210 c c )gas engine • 12 nozzle adjustable discharge 200 mph velocity • Calibration from 1 quart to 40 gal per acre •Up to 40 ft swath width for crops •Up to 40 ft height with Teleblast • Mounts on 3 pt hitch or skids into pick up truck Lancaster County s Only Dealer Specializing in Sprayer Sales & Service LESTER A. SINGER RONKS, PA PH (717)687-6712 Hours Mon -Fn 8-5 Sat 9-12 The Milk Check TOM JURGHAK County Agent drops you will have another 40 cent take out for the Louisville Pan, your Class I price goes up only nine cents and, most importantly, school’s out and Class I sales will drop 20 million pounds. Less For More If you’re interested in changing more milk for less money to less milk for more money, it’s not hard to do at least on paper If you could reduce production by only three percent, even below your present high rate, you could have your manufacturing grade milk pnce at least up to the support level of $12.07 instead of the $11.59 that it was m May. The M-W pnce is always higher than the manufac turing grade price So it could easily be $12.15. The May seasonal ad justment for Class II milk in Order 2 is minus 12 cents so that would make it $12.03 The Gass I differential is $2.25. So, added to the $12.15, it would make that price $14.40. With a three percent cut in production, your utilization would increase to at least 50 percent. So you could have a blend of $13.21 instead of $11.90 a hundred. An increase of $1.31 sounds too good and it is. Let’s take out the 15 cent tran sportation credit from the pool and 40 cents for the Louisville Plan That makes it $12.56 a hundred. But still 66 cents better than your $11.90 of last month. But, if you have to reduce production to get it, are you any better off than now 9 In May, the average Order 2 producer shipped 1,827 pounds of milk a day (which. liiLiu* nutdy, v^u s and got $217.41 for it If he dropped three per cent, he would ship 1,772 pounds a day. At $12.56 a hundred, he would receive $222.56 or $5.15 more per day. How much milk is three percent per day? This is what shocks most farmers who think they have to sell half their herd to make an impact on the market. Actually, it’s only 55 pounds per day or a couple of tail end cows that should have been dried off or sold anyway. Some would even argue that it would pay to dump it, or drink it, or feed it to calves. If you didn’t produce it, you would have additional savings from costs of feed, labor, vet bills and everything else that went into producing that 55 pounds a day. Admittedly, I’ve painted this picture "With a pretty wide brush and taken some liberties with the two month lag in the M-W and the Class I price Some will find fault with it but mainly because my “guesstimates” are too low. I still believe that the “less for more” principal is valid and now’s the tune to talk about it Right now there are no mechanisms in federal orders or the price support program for supply control except through cooperative. Voluntary programs for this won t work any better than they do for advertising and promotion contributions. This brings up the other possibility of increasing demand through promotion rather than limiting supply with production controls. It’s a good idea but may not return as much as quickly as supply control. Down the Road or Up the Creek You’re in trouble right now Build for the Future, Toda Business has been good You’ve outgrown your present facilities and must move to larger quarters That will solve the problem today, but what about tomorrow? A Mesco building may be the solution to your problems both now and in the future Because it’s a systems building, it means a faster, more economical structure today and easy low cost expansion tomorrow Find out more about how Mesco Building Systems can solve your future building needs Call us today and the supply is going to get controlled by the price sooner or later no matter what you do. I believe the USDA will be taking some action through the Congress before October in spite of national elec tions that will jerk your chain sufficiently to get your attention. Even the “trigger” mechanisms that were “out of the question” back in March may be “entirely acceptable” in September Last Spring USDA was out on a limb with that idea but smce then it has become Farm Bureau policy. With that much help it’s not a question of “whether” but “when” Any changes made by the Congress now will probably □ Please send me color catalog on the Cherokee horse stock trailers and GN flatbeds. □ Please send me literature on Silo-Matic Feeding Systems. lAME I ADDRI ITY ERNON MYERS, INC. STEEL BUILDINGS & GRAIN STORAGE R.D. 4- Box 845 Lebanon, Pa. 17042 Phone: (717)867-4139 A\€SCO AUTHORIZED BUILDER take you only to September, 1981 Next year a brand new farm bill will be written, and you may get production controls as part of the price support program whether you want them or not. So, you better be thinking now about what kind of STATE ZIP. PLAN NOW FOR GRAIN STORAGE TO TAKE ADVANTAGE OF ASCS interest-frff LOANS ON 1980 CROP. WE PROVIDE TFIE MOST MOD ERN QUALITY PRODUCTS AND SERVICES AVAILABLE IN GRAIN HANDLING AND STORAGE EQUIP MENT. -BINS- - DRYERS -FANS- - AUGERS -BUCKET ELEVATORS COMMERCIAL and AGRICULTURAL BUILDINGS We Offer Complete Erection On Any Size Or Style Building fmmmmnmmmmmmmmmmmi I Matt Coupon Today! | JL ] SEND STEEL BUILDINGS LITERATURE * ■(3 SEND GRAIN STORAGE LITERATURE ■ ® NAME I j ADDRESS | CITY |TELEPHONE controls you want so you will at least get something you feel you can live with. It’s a lot better to be looking down the road now than being up the creek later XXX The overall rate of farm fatalities was 14.5 per 100,000 farm residents and workers in 1976. .STATE ZIP
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